Hi, we dont have a petty cash and my boss purchases things sometimes cash (from his personal account) for the business i.e stamps, postage.. how will i show that on sage since his personal account is not part of the charts of accounts? I've got all receipts.
There are a number of ways that you could show this on Sage:
(1) You could set your boss up as a supplier on Sage, post the expenses as dummy supplier invoices and, when the business repays him, post this repayment as a supplier payment.
(2) You could use the petty cash account on Sage to post the expenses. When the business repays him, you would do a transfer from the current account to clear the petty cash account.
(3) If this is a company, you could also set up a nominal code for a director's loan account and post the expenses as journals.
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Pearce & Co - Chartered Accountant and Chartered Tax Adviser
I agree with Robert and personally would opt for option 2 using Petty Cash and would add that if for some reason payment isn't physically made then a journal can be done to either drawings or directors loan account.
